Global investment in the low-carbon energy transition surged to a record $2.1 trillion in 2024, marking an 11% increase from the previous year, according to BloombergNEF’s (BNEF) annual Energy Transition Investment Trends 2025 report. Despite this record high, the pace of growth has slowed, following three years of rapid expansion between 24% and 29% annually.
Electrified transport remained the largest contributor to clean energy investment, reaching $757 billion in 2024. This includes spending on passenger electric vehicles (EVs), electric two- and three-wheelers, commercial EVs, public charging infrastructure, and fuel cell vehicles.
Investment in renewable energy followed closely at $728 billion, covering key sectors such as solar and wind energy (onshore and offshore), biofuels, biomass, waste-to-energy, marine, geothermal, and small hydro power.
Power grid investment also reached $390 billion, including funding for transmission and distribution networks, substation equipment and grid digitalisation.
The report highlights a clear distinction between investment in mature and emerging clean energy technologies.
Established sectors such as renewable energy, energy storage, power grids, and EVs attracted $1.93 trillion in 2024— a 14.7% rise year-on-year. Growth persisted despite policy uncertainties, high interest rates, and slower consumer demand.
Emerging clean energy technologies, including hydrogen, carbon capture and storage (CCS), nuclear, clean industry, and clean shipping, saw investment drop by 23% to $155 billion. These sectors face challenges like high costs, technology immaturity, and commercial scalability issues.
BNEF warns that without stronger public and private sector collaboration these technologies may not scale quickly enough to significantly reduce emissions by 2030.
China remained the world’s largest clean energy investor, accounting for $818 billion —a 20% increase from 2023. This growth represented two-thirds of the total global increase, with all major sectors in China showing strong expansion.
Meanwhile, investment in the US stagnated at $338 billion, while the EU and UK saw declines, with investments dropping to $381 billion and $65.3 billion, respectively. China’s total investment in 2024 exceeded the combined investments of the US, EU, and UK. Other major contributors to global clean energy growth included India (+13%) and Canada (+19%), which increased their investments significantly.
Despite record-breaking investment levels, BNEF’s report warns that global clean energy investment must rise to $5.6 trillion annually from 2025 to 2030 to align with the Paris Agreement’s net-zero targets. Currently, the world is investing only 37% of what is needed.
“Our report highlights the rapid expansion of the energy transition despite economic and policy challenges. However, we must accelerate investment in industrial decarbonisation, hydrogen, and carbon capture. Unlocking these technologies requires strong partnerships between the private and public sectors,” said Albert Cheung, Deputy CEO of BNEF.
While overall clean energy investment hit record highs, funding for the clean energy supply chain —including equipment manufacturing and battery metals production —declined slightly to $140 billion in 2024. However, it is projected to rise to $164 billion in 2025.
Battery manufacturing remained the top focus, accounting for 60% of total supply chain investment.
Climate-tech companies raised $50.7 billion in private and public equity in 2024, down 40% year-on-year —marking the third consecutive annual decline.
Clean power and transport companies led fundraising efforts, attracting $31.8 billion. The US remained the largest market for equity financing ($17.9 billion), followed by China ($9 billion).
Meanwhile, energy transition debt issuance reached $1 trillion in 2024, a 3% increase compared to 2023. Corporate debt grew 5%, supported by interest rate cuts globally. Project debt volumes declined, while government energy transition debt remained stable.
The report highlights the ongoing momentum in global clean energy investment despite economic challenges. However, substantial financial mobilisation is still required to close the investment gap and meet global net-zero targets by 2050.
